Dow, S&P 500, Nasdaq wipe out Trump-led features as tariff sell-off continues

US markets have eradicated all their post-election features as shares deepen their sell-off with contemporary tariffs on Canada, Mexico, and China now formally in impact.

The S&P 500 (^GSPC) has erased about $3.3 trillion in market cap since its report closing excessive of 6,144.15 on Feb. 19. At the moment, the benchmark index’s post-election features had been hovering at simply round 6%.

For the reason that begin of 2025, the S&P 500 is down round 2% whereas the Nasdaq Composite (^IXIC) is off practically 6% and is at the moment flirting with correction territory, on observe to shut 10% off its report excessive. The blue-chip Dow (^DJI) is buying and selling simply barely within the inexperienced for the 12 months.

Just a few months in the past, shares traded at constant information as Donald Trump’s presidential win fueled bullish Wall Avenue euphoria on hopes of pro-business insurance policies and decrease taxes.

Flash ahead to at this time, and that euphoria has all however evaporated as Trump’s tariffs spark development fears whereas inflation stays stubbornly elevated.

“Most of the key developments in monetary markets within the run-up to and speedy aftermath of the US election final November have stalled or partly reversed since President Trump took workplace final month,” Jonas Goltermann, deputy chief markets economist at Capital Economics, wrote in a word final week.

“Since then, US Treasury yields have dropped again, the 2-10s curve has flattened, US equities have struggled each in absolute phrases and relative to these elsewhere, and the greenback has dropped again,” he stated. “In different phrases, the ‘Trump commerce’ narrative that dominated many markets in This fall is floundering.”